Headlines

After false start, Nigerian fleet committee submits report to Minister of transportation.

—–as stakeholders sceptical about implementation

The Eyewitness reporter

Despite the initial hiccups that have stalled the early implementation of the national fleet project, the federal government seems to still be pushing ahead with the laudable programme.

The project, muted in 2016, suffered a temporary setback when the Pacific International Line (PIL), a Singaporean consortium that signed a memorandum of understanding (MoU) with the Federal Government to float the shipping line, withdrew its intention to be a partner in the business.

However, despite this initial disappointment, the committee, set up by the federal government to midwife the implementation of the national project and headed by Nigerian Shippers’Council, submitted its interim report to the Minister of Transportation, Mu’azu Jaji Sambo, in his office yesterday.

Receiving the report at the Ministry in Abuja, the Minister stated that, “Nigeria is a maritime country and if Nigeria gets its acts together, the country will have no business looking for money from the oil sector as a contribution to the GDP of the country.”

Speaking on how the project can be immediately realized, he said:

“I don’t know whether, in the course of the Committee’s consultations with other Stakeholders, you were able to have some conversations with the Nigerian National Petroleum Corporation (NNPC) because, If NNPC, can give 100 % support, this matter can be closed in two months,”

Earlier, the Executive Secretary, Nigerian Shippers’ Council,and Chairman, Nigerian Fleet Implementation Committee (NFIC), Emmanuel Jime, said the Committee was constituted by the immediate past Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi, to implement the recommendations in the report by an earlier Ministerial Committee on Modalities for the Establishment of a Nigerian Fleet.

Jime who was represented by Managing Director, Sea Transport Group and member, NFIC, Umar Aminu, stated that the initiative was a way of responding to the non-participation of Nigerians in the carriage of Nigeria’s international cargo as well as the loss of freight revenue, jobs and other benefits which would otherwise have accrued to the country.

He also said: “In the course of carrying out the mandate, lessons have been learnt and some modest achievements have been recorded. These have been captured in this interim report which we are submitting today. The work is still ongoing and the goal of creating an enabling environment for the growth of a sustainable Nigerian fleet will be achieved in due course”.

Continuing, Jime noted: “There were challenges that impeded the quick realization of the project as earlier envisaged. Shipping is international and competitive in nature and Nigeria cannot operate in isolation, hence the need for the operating environment to be similar to what obtains elsewhere.

“This has been a major challenge to the growth of the sector in Nigeria. Review of certain trade policies, access to funds and technical/human capacity are issues that need to be resolved”.

It could, however, be recalled that in 2016, the federal government signed a Joint Venture (JV) partnership with PIL, on a shareholding of 60:40 for the establishment of the national shipping line.

The 60 per cent equity share was to be held by a group of indigenous shipping firms that are yet to be selected, while the remaining 40 per cent shares go to the foreign firm.

In 2018, two years after the MoU was signed, the Singaporean company withdrew from the deal, apparently because of the failure of Nigeria to bring to the table its own counterpart funding of 60 per cent.

The erstwhile Minister of Transportation, Rotimi Amaechi, blamed the PIL withdrawal on the failure of the indigenous ship owners to contribute their own share of the counterpart funding.

Stakeholders are however curious about how the new Minister will resuscitate the botched joint venture with the PIL or any other foreign investors, some of who have complained about the unfavourable business environment in the country.

Specifically, Engineer Greg Ogbeifun, one of the foremost indigenous ship owners, revealed that the PIL pulled out because the Nigerian Fiscal Policy on the importation of vessels does not make the establishment of a shipping fleet competitive in global trade.

He listed other unfavourable fiscal policies including tax laws, tonnage tax laws, and other laws that affect international shipping, but said that a recent study conducted by local shipping firms, shows that, unlike Nigeria, most countries first declare zero duty on the importation of vessel to encourage shipping business.

“The duty payable on an average, if you are bringing in a vessel, is about 14 per cent of the value of that vessel.

” So, if you bring in a vessel of $80 million, a crude oil tanker, you will be expected to pay $80 million and then in Nigeria’s port, you have to pay 14 per cent of that value to enable you to import it,” he explained.

He noted that PIL said in their writing that Nigeria must review the fiscal policy if they must continue in the partnership because the commercial terms for carrying cargo will be cheaper for a country with zero duty compared with Nigeria with 14 per cent duty.

Industry watchers however wondered the type of magic the new Minister will perform to change the narrative given the fact that he has barely seven months in office.

“The Minister may not do much to change the narrative before he leaves given his short stay in the office.

“He has between now and December to do any serious work, because, by January 2023, the electioneering campaign will start.

“And we all know that during that period, serious government work takes the back seat.

“So, tell me, what magic can he perform between now and December, barely four months?

“His good intentions on the national fleet, disbursement of the controversial CVFF and reactivation of the Eastern ports may, unfortunately, remain an illusion which may not be realised before he leaves,” a critical stakeholder told our reporter.

Related Topics:featured National fleet project

Up Next

NIMASA commences biometric registration of dockworkers, seafarers

Don't Miss

Aftermath of subsidy removal: Nigerians to buy Petrol for N462 per litre. — NNPC

Click to comment

Headlines

House of Reps gives NIMASA green light to disburse CVFF –appoints audit firm to coordinate, monitor disbursement

Hon. Legor Idagbo

The eyewitness reporter

The House of Representatives has given the Nigerian Maritime Administration and Safety Agency (NIMASA) a clean bill of health over the controversial Cabotage Vessels Financing Funds(CVFF) and consequently directed the agency to disburse the funds.

It would be recalled that the lawmakers, a few weeks ago, halted the planned disbursement after long and painstaking groundwork made by the Ministry of Transportation and NIMASA towards the disbursement process.

The House had raised concerns over the funds, said to be about #700m, and decided to ask its committee on Nigerian Contents Development and Monitoring to investigate the funds.

This followed a motion during its sitting last month on the matter and subsequently directed the Nigerian Maritime Administration and Safety Agency (NIMASA) to stop the planned disbursement of the fund.

However, after concluding its investigation, the House found tenable the need to disburse the funds to the eligible indigenous ship owners.

Addressing journalists in Abuja Thursday, the Chairman of the committee, Hon. Legor Idagbo said that its investigations indicated that due process was followed, informing that the disbursement can now be made.

“The House of Representatives at its sitting on Tuesday, 4 May 2023, deliberated on a motion on the Planned Disbursement of $700 Million Cabotage Vessel Finance Fund, and investigate the Total Accrual of the Fund, and referred same to the House Committee on Nigerian Content Development and Monitoring to, amongst other resolutions, investigate and urge the Nigerian Maritime Administration and Safety Agency (NIMASA) to immediately stop the planned disbursement of $700 million to Nigerian citizens and companies and to lay before the floor of the House, an audited statement of account showing all monies that have accrued to the Cabotage Vessel Finance Fund not later than fourteen (14) days from the date of this resolution.

“The Committee requested the Nigerian Maritime Administration and Safety Agency and the Ministry of Transportation to provide detailed information on the total amount accrued to the Fund and disbursements since inception.

“The Committee met with the Minister of Transportation and the Director-General of the Nigerian Maritime Administration and Safety Agency ({NIMASA) on Thursday, 11 May 2023 to find out about the details concerning the matter.

” After a thorough analysis of the various submissions on the matter coupled with the explanations given by the Ministry and NIMASA, the Committee discovered that due process was followed in the planned disbursement of the Cabotage Vessel Finance Fund.

“The Committee notes that the Cabotage Vessel Finance Fund (CVFF) is a fund that was set up in 2003 by the Coastal and Inland Shipping Act.

” The Fund was established for the purpose of developing indigenous ship acquisition capacity, and to provide financial assistance to indigenous shipping operators.

“The Committee further notes that there is a lack of Capacity amongst indigenous/ Domestic Coastal operators in Nigeria, thus the reason Nigerian National Petroleum Corporation Limited (NNPC) still awards contracts to foreign shipping Companies in contravention of the Cabotage and Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

“Some of these awards have been previously investigated by the Committee which led to their cancellation.

“It was also discovered that the total funds of $360m in the Cabotage Vessel Finance Fund (CVFF) account with the Central Bank of Nigeria (CBN) represents 50%, while the remaining counterpart funds of 50% is from stakeholders and Banks which is 15% and 35% respectively.

“NIMASA should go ahead with the disbursement of the Cabotage Vessel Finance Fund (CVFF) in compliance with the extant laws and laid down guidelines for the said disbursement.

“To ensure the disbursement does not violate any of the extant laws made by the National Assembly, the following persons were nominated to supervise the disbursement process:
“Rt. Hon. (Barr.) Legor Idagbo – Chairman ii. Hon. Henry Nwawuba – Member iii. | Mrs. Kehinde Bolade Olaiya – Committee Clerk.

“An Audit firm, Stratford Hill and Co. was appointed by the committee as the coordinating enforcement auditor for the CVFF.

“The Committee applauds NNPC for its commitment to awarding the shipping contracts to indigenous companies that have built capacity to the level where they can successfully execute these contracts.

“The Committee is grateful to the leadership of the House for the confidence bestowed on it to carry out the investigation”.

Headlines

President Tinubu appoints Gbajabiamila Chief of Staff

Gbajabiamila , Tinubu

President Bola Tinubu has appointed Femi Gbajabiamila, the Speaker of the House of Representatives, as his Chief of Staff.

An authoritative source in the Presidency confirmed the development on Thursday.

The source said the president finally made the decision after wide consultations on the contending candidates.

Gbajabiamila has been a member of the House of Representatives since 2012 and has just been re-elected to the House in the last elections.

The choice of Gbajabiamila by the president is not a surprise to many political pundits as he has been a very close ally to the president.

They are part of the brains behind the formation of the All-Progressives Party (APC).

He will now have to forgo his seat in the House of Representatives if he accepts the appointment.

Olufemi Hakeem Gbajabiamila CFR, is a Nigerian lawyer and foundation member of the APC.

He has been a member of the House of Representatives since 2019.

Gbajabiamila was born in Lagos in 1962 and attended Igbobi College for his secondary education and the University of Lagos as part of his education.

He is married to Salamatu Gbajabiamila.

Headlines

Maritime media, NUJ mourn as Ray Ugochukwu passes on to glory

Ray Ugochukwu

The eyewitness reporter

The media confraternity of the Nigeria Union of Journalists (NUJ), Lagos State Council and the maritime media, was thrown into a deep shock and mourning Thursday at the sudden demise of Mr Ray Ugochukwu, a crack journalist of international repute.

The entire members of the NUJ and the maritime media, his immediate constituency, received the news of his death, which was broken by Mr Leye Ajayi, the Chairman of the NUJ Lagos council, in a terse message posted on the council’s WhatsApp platform, with mixed emotion of sadness, shock and disbelief.

Shell-shocked, most colleagues of the deceased, who thought the announcement was a joke taken too far, make frantic calls to the NUJ council officials who confirmed the unfortunate incident.

As the rude reality of the death of the erudite maritime journalist sank in, many of them paid glowing tributes to the man widely regarded as the encyclopedia of the maritime press and a repository of wise sayings.

In its statement on the death of Mr Ugochukwu, Leye Ajayi eulogised the huge reportorial qualities of the deceased who has practised journalism for over 30 years

“With heavy hearts, we mourn the death of a media giant, a versatile Unionist and a brilliant journalist, Mr Ray Ugochukwu who passed on on Thursday.

“The death of Ray came as a big shock to the union.

“We are going to miss his courageous attributes and mentorship.

“He was also one of the pillars of the Lagos Council of NUJ and served the union meritoriously in his capacities as the Chairman of, the Seminar Committee; and as a Member, the Committee on Milestone Recognition of Media Icons In Nigeria.

“He spent most of his life in ensuring the advancement of Maritime Reporting as well as the welfare of Journalists.

“He worked in several media houses.

“Among his giant strides, he was a former President of the Maritime Reporters’ Association of Nigeria (MARAN); President, Maritime Journalists Association of Nigeria (MAJAN); and a former Chairman of the Daily Times Chapel of NUJ.

“The legacies of Ray are indelible and will exist forever.

“May God grant his soul eternal rest” the Lagos NUJ said in a statement signed by Leye Ajayi, the Council Chairman and Tunde Olalere, the Council Secretary.